Financial Performance - For the six months ended September 30, 2020, the revenue from continuing operations decreased by 67.7% to HKD 49,843,000 from HKD 154,425,000 in the same period last year[8]. - The loss for the six months ended September 30, 2020, increased by 25.4% to HKD 74,613,000 from HKD 59,479,000 in the same period last year, primarily due to a significantly weak market atmosphere[8]. - The gross profit from continuing operations dropped by 98.6% to HKD 800,000, with the gross margin falling from 35.1% to 1.6%[12]. - The company reported a basic and diluted loss per share of HKD 1.23 for the six months ended September 30, 2020, compared to HKD 0.98 in the same period of 2019, indicating a worsening in per-share performance[83]. - The company incurred a loss from continuing operations of HKD 73,689,000 for the six months ended September 30, 2020, compared to a loss of HKD 58,121,000 in the prior year, reflecting an increase in loss of approximately 26.7%[81]. - Total comprehensive loss for the period was HKD 42,306,000, compared to a loss of HKD 106,353,000 in the same period of 2019, showing an improvement of about 60.2%[83]. Revenue Breakdown - In the first half of the fiscal year 2021, the total revenue from Hong Kong, Mainland China, and Macau amounted to HKD 39,700,000, accounting for 79.7% of the group's total revenue[25]. - Revenue from Mainland China and Macau reached HKD 20,000,000 in the first half of fiscal year 2021, a decrease from HKD 65,100,000 in the same period last year, representing a 69.0% decline[26]. - Revenue from Hong Kong decreased by 69.7% to HKD 19,700,000 in the first half of fiscal year 2021[27]. - Revenue from other regions fell by 56.9% to HKD 5,800,000 in the first half of fiscal year 2021[28]. - The total revenue from the watch distribution segment was HKD 45,548,000 for the six months ended September 30, 2020[137]. Cost and Expenses - The cost of sales for the same period was HKD 49,058,000, compared to HKD 100,240,000 in 2019, indicating a reduction of about 51.1%[81]. - The total employee costs for the period were HKD 15,567,000, down from HKD 28,284,000 in the previous year, reflecting a reduction of approximately 45%[148]. - The company recorded a total of HKD 49,218,000 in cost of goods sold, which included inventory write-downs of HKD 8,739,000[148]. Assets and Liabilities - The company’s total assets decreased to HKD 726,209,000 as of September 30, 2020, from HKD 743,155,000 as of March 31, 2020, a decline of about 2.3%[89]. - The company’s total liabilities decreased to HKD 358,607,000 as of September 30, 2020, compared to HKD 346,038,000 as of March 31, 2020, reflecting an increase of approximately 3.6%[89]. - The company’s equity decreased to HKD 815,299,000 as of September 30, 2020, from HKD 857,605,000 as of March 31, 2020, a decline of about 4.9%[91]. Cash Flow and Liquidity - The company reported a net cash outflow from operating activities of HKD 5,649,000 for the six months ended September 30, 2020, compared to HKD 45,832,000 in the previous year, indicating a significant reduction in cash burn[99]. - The company’s cash and cash equivalents at the end of the period were HKD 44,437,000, down from HKD 65,818,000 at the end of the same period in 2019, a decrease of approximately 32.4%[99]. - As of September 30, 2020, the group maintained cash and bank balances of HKD 44,400,000, up from HKD 43,600,000 on March 31, 2020[34]. Shareholder Information - As of September 30, 2020, the company has 325,920,000 shares held by Sincere Watch Limited, which is fully owned by Be Bright Limited, and ultimately owned by Ms. Li Yuehua, representing approximately 9.8% of the total issued shares[54]. - Major shareholders include New Horizon Capital Limited and its controlled entities, holding a total of 2,078,490,000 shares, which is approximately 62.5% of the total issued shares[60]. - The company did not declare an interim dividend for the six months ended September 30, 2020, compared to no dividend in the same period last year[8]. Operational Changes - The company has ceased its food and beverage business as of March 31, 2020, and reclassified it as discontinued operations for the periods ended September 30, 2020, and 2019[116]. - The company operates two main business segments: watch distribution and property investment, with performance evaluated based on geographical sales locations[116]. - The company committed to using the government subsidies for salary expenses and will not reduce employee numbers below a specified level during the designated period[111]. Market Conditions - The impact of COVID-19 on the retail and tourism sectors significantly affected the company's operations, leading to a substantial decline in visitor numbers from mainland China[110]. - The company received government subsidies amounting to HKD 3,100,000 to support employee salaries and watch distribution business during the COVID-19 pandemic[111]. Governance and Compliance - The company has complied with the corporate governance code as per the listing rules during the six months ending September 30, 2020[68]. - The audit committee, consisting of four independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ending September 30, 2020[70]. Asset Valuation - The fair value of investment properties as of September 30, 2020, was HKD 624,292,000, down from HKD 657,318,000 as of March 31, 2020, indicating a decrease of approximately 5.0%[164]. - The fair value change of investment properties for the period included a loss of HKD 59,317,000, reflecting ongoing market challenges[165]. - The group’s investment properties are measured at fair value and are leased to third parties to generate rental income, with valuation conducted by an independent qualified professional[165].

Financial Performance - Revenue for the six months ended September 30, 2019, decreased by 31.3% to HKD 155,227,000 from HKD 225,795,000 in the same period last year[7] - Gross profit fell from HKD 89,737,000 to HKD 54,698,000, resulting in a gross margin decline from 39.7% to 35.2%[7] - Loss for the six months ended September 30, 2019, decreased to HKD 59,479,000 from HKD 65,299,000 in the same period last year[7] - Earnings per share for the six months ended September 30, 2019, was HKD 0.01, compared to HKD 0.011 in the same period last year[7] - Total comprehensive loss for the period was HKD 106,353, compared to HKD 140,456 in 2018, indicating a reduction of 24.2%[88] - The company reported a net loss of HKD 59,479,000 for the six months ended September 30, 2019, an improvement from a net loss of HKD 65,299,000 in the same period of 2018, indicating a reduction in losses by approximately 11.5%[171] - The company reported a basic and diluted loss per share of HKD 1.0, compared to HKD 1.1 in the previous year[88] Revenue Breakdown - Revenue from Hong Kong, China, and Macau accounted for 84.2% of total revenue, totaling HKD 130,800,000[15] - Revenue from Hong Kong decreased by 40.7% to HKD 65,700,000, representing 42.3% of total revenue[16] - Revenue from Mainland China and Macau decreased by 16.3% to HKD 65,100,000, accounting for approximately 41.9% of total revenue[17] - Other regions saw revenue decline by 41.8% to HKD 13,500,000[18] - For the six months ended September 30, 2019, total revenue was HKD 155,227 thousand, with a breakdown of HKD 65,684 thousand from Hong Kong, HKD 65,087 thousand from Mainland China and Macau, and HKD 13,526 thousand from other regions[142] Operational Metrics - The group operates 61 retail points, including 49 retail stores and 12 boutiques, down from 62 at the end of March 2019[21] - The group employed 156 staff members as of September 30, 2019, down from 167 as of March 31, 2019[45] - Employee costs totaled HKD 28,342,000, down from HKD 35,322,000 in the previous year, reflecting a decrease of about 19.7%[165] Cash Flow and Assets - As of September 30, 2019, the group maintained cash and bank balances of HKD 65,800,000, down from HKD 81,800,000 as of March 31, 2019[34] - The total cash and cash equivalents at the end of the reporting period was HKD 65,818 thousand, down from HKD 93,679 thousand at the end of the same period in 2018, representing a decrease of 29.8%[105] - The company's total assets as of September 30, 2019, were HKD 1,013,481, down from HKD 1,207,581 as of March 31, 2019[93] - The net asset value as of September 30, 2019, was HKD 955,364, down from HKD 1,061,717 as of March 31, 2019[95] Investments and Acquisitions - The group is in the final stages of negotiating terms for a potential acquisition of 51% equity in an Australian entity engaged in international film sales, distribution, and production[32] - The company has invested HKD 45,000,000 in a film project, classified as a financial asset measured at fair value through profit or loss[192] Compliance and Governance - The company has complied with the corporate governance code as per the listing rules during the reporting period[71] - The board of directors confirmed compliance with the standards set out in the code of conduct for securities transactions during the six months ending September 30, 2019[72] - The interim results for the six months ending September 30, 2019, were reviewed by the independent auditor and the audit committee[73] Lease and Financial Reporting Standards - The company has adopted HKFRS 16 "Leases" for the first time, which may impact the financial statements and requires careful consideration of its effects[110] - The adoption of Hong Kong Financial Reporting Standard 16 resulted in an increase of HKD 98,360,000 in right-of-use assets on the balance sheet as of April 1, 2019[120] - Lease liabilities increased by HKD 44,898,000 (current) and HKD 55,714,000 (non-current) as a result of the new standard[120] - The company chose not to capitalize leases with a term of less than 12 months, treating related lease payments as expenses over the lease term[124] Shareholder Information - The total number of issued shares as of September 30, 2019, was 6,043,950,000, with no changes in the capital structure during the reporting period[40] - Major shareholder New Hongji Structure Financing Limited holds 2,078,490,000 shares, accounting for 34.39% of the issued shares[58] - Sky League Limited, fully owned by Wang Fang, holds 1,294,370,000 shares, representing 21.42% of the issued shares[64] - Asia Gate Holdings Co., Ltd. owns 1,061,950,000 shares through its subsidiary, representing 17.57% of the issued shares[65] Impairment and Losses - The impairment loss on property, plant, and equipment increased significantly to HKD 29,706 from HKD 2,326 in 2018[85] - The company recognized an impairment loss of HKD 29,706,000 on property, plant, and equipment, significantly higher than the HKD 2,326,000 recognized in the same period last year[174] - The company reported a loss from the fair value changes of financial assets amounting to HKD (65,299) thousand during the period[105] Other Financial Metrics - The company reported interest income of HKD 298,000, a decrease from HKD 565,000 in the previous year, reflecting a decline of approximately 47.3%[165] - The total cost of inventory recognized during the period was HKD 100,529,000, down from HKD 136,058,000 in the prior year, indicating a decrease of about 26.1%[165] - The fair value of investment properties as of September 30, 2019, was HKD 678,199,000, compared to HKD 728,544,000 as of March 31, 2019, showing a decrease of approximately 6.9%[175]

Financial Performance - Revenue for the fiscal year ended March 31, 2019, increased by 7.1% to HKD 414,597,000 from HKD 387,026,000 in the previous fiscal year[5] - Gross profit rose from HKD 140,917,000 to HKD 166,420,000, with gross margin improving from 36.4% to 40.1%[6] - Net loss for the fiscal year increased to HKD 122,831,000, compared to a loss of HKD 59,972,000 in the previous year, primarily due to fair value losses on equity instruments[6] - Loss per share for the fiscal year was HKD 2.06, up from HKD 1.20 in the previous fiscal year[7] - The company reported a significant increase in revenue, achieving a total of HKD 1.2 billion for the fiscal year, representing a 15% year-over-year growth[19] - The company has reported a gross margin improvement to 35%, up from 30% in the previous year, due to cost optimization efforts[19] - The company's net loss for the fiscal year was HKD 122.8 million, compared to a net loss of HKD 60 million in the previous year[38] - The earnings per share for the fiscal year was HKD 2.06, up from HKD 1.20 in the previous year[38] Dividends and Reserves - The board did not recommend a final dividend for the fiscal year ended March 31, 2019[8] - The company reported a distributable reserve of approximately HKD 1,014,732,000 as of March 31, 2019, an increase from HKD 863,036,000 in 2017[156] - The company does not recommend the payment of a final dividend for the year ended March 31, 2019[155] Cash and Assets - Cash and bank balances as of March 31, 2019, totaled HKD 81,800,000, with no outstanding bank borrowings[12] - As of March 31, 2019, the group's cash and bank deposits totaled HKD 81,800,000, down from HKD 194,000,000 on March 31, 2018[68] - The net asset value decreased from HKD 544,800,000 on March 31, 2018, to HKD 383,200,000 on March 31, 2019, while total net assets remained stable at HKD 1,061,700,000[73] Market and Growth Strategy - The company aims to strengthen its core capabilities and consolidate its leadership position despite the reported losses[11] - The retail market for luxury watches showed signs of recovery during the fiscal year[11] - User data indicates a growing customer base, with an increase of 25% in active users compared to the previous year, reaching 500,000 active users[19] - The company has set a future outlook with a revenue target of HKD 1.5 billion for the next fiscal year, indicating a projected growth of 25%[19] - New product development includes the launch of a smartwatch line, expected to contribute an additional HKD 200 million in revenue within the first year[19] - The company is expanding its market presence in Southeast Asia, with plans to open 10 new retail locations by the end of the next fiscal year[19] - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance market share by 10%[19] - The company is investing in new technology for digital payment solutions, aiming to increase transaction efficiency by 30%[19] - The management team has outlined a new marketing strategy focusing on digital channels, which is expected to increase brand awareness by 40%[19] Expenses and Cost Management - Sales and distribution costs decreased by 2.7% to HKD 96,700,000, mainly due to reduced rental expenses for specialty stores[15] - General and administrative expenses increased to HKD 108,600,000, driven by higher employee costs and property expenses[15] Customer and Supplier Relations - Sales to the top five customers amounted to HKD 135 million, a 4.5% increase from HKD 129.2 million in the previous year, representing approximately 32.6% of total revenue[42] - The largest customer accounted for 14.0% of total revenue, down from 15.6% in the previous year[42] - The procurement amount from the top five suppliers in the fiscal year 2019 was HKD 297 million, an increase of approximately 12.3% from HKD 264.5 million in 2018[43] - The top five suppliers accounted for approximately 98.6% of the total procurement amount in fiscal year 2019, down from 99.3% in 2018[43] Regional Performance - The total revenue from Hong Kong, mainland China, and Macau was HKD 357.8 million, representing 86.3% of the group's total revenue in fiscal year 2019[57] - Revenue from Hong Kong decreased by HKD 28.4 million to HKD 185.6 million, a decline of 13.3% compared to HKD 214 million in the previous year[58] - Revenue from mainland China and Macau increased by 23.3% to HKD 172.2 million, up from HKD 139.6 million in the previous year, contributing 41.5% to total revenue[60] - The profit from the mainland China and Macau market increased by HKD 14 million or 21.1% to HKD 80.5 million in fiscal year 2019[61] - Revenue from other Asian regions (Taiwan, Singapore, and South Korea) rose by 82.5% to HKD 30.1 million, compared to HKD 16.5 million in the previous year[62] - The group recorded a profit of HKD 10.6 million from other Asian regions, an increase of 96.0% from HKD 5.4 million in the previous year[63] - The group reported a revenue of HKD 26.7 million from property investments in mainland China, a 57.8% increase from HKD 16.9 million in the previous year[64] Corporate Governance - The board of directors consists of nine members, including five executive directors and four independent non-executive directors, ensuring compliance with listing rules[95] - The company has adopted corporate governance standards in line with the Hong Kong Stock Exchange's requirements, ensuring high governance standards[91] - The company has received annual independent confirmations from its independent directors, affirming their independence as per regulatory guidelines[97] - The company is committed to maintaining compliance with legal and regulatory requirements, as part of its corporate governance practices[95] - The company has implemented a code of conduct and compliance manual applicable to directors and employees, enhancing governance practices[95] - The board is responsible for reviewing and monitoring the company's governance policies and practices, ensuring alignment with business objectives[95] - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Investment Committee to oversee various affairs[106] - The Audit Committee held three meetings during the year, reviewing the financial statements for the year ended March 31, 2019, and providing recommendations to the board[108] - The Remuneration Committee held one meeting during the year, reviewing and recommending the remuneration packages for executive directors and senior management[112] - The company encourages directors to participate in continuous professional development, with all directors attending three relevant training sessions during the year[104] - The Nomination Committee was established to review the board's structure and diversity, ensuring a diverse range of expertise, particularly in management, financial control, business development, and human resources[114] - The company has adopted a nomination policy to enhance the diversity of the board, considering factors such as gender, age, and professional experience[114] Risk Management and Compliance - The company has implemented a risk management process that includes risk identification, assessment, management measures, and monitoring[137] - The company has complied with all relevant codes regarding risk management and internal controls during the fiscal year[126] - The board is responsible for ensuring the establishment and maintenance of effective risk management and internal control systems[124] - The company has established appropriate monitoring procedures to ensure comprehensive, accurate, and timely recording of accounting and management information[134] - The company conducts monthly comparisons of financial performance against budgets and forecasts, with updates provided to all directors[134] - The company has a whistleblowing policy allowing employees to report potential misconduct confidentially, which is reviewed by the audit committee[136] Environmental Commitment - The board of directors emphasizes a commitment to sustainability, with plans to reduce carbon emissions by 20% over the next three years[19] - The company has implemented waste management and resource-saving measures to reduce environmental impact, reflecting its commitment to sustainable business growth[197]